Accounting
Demonstration Problem 18-1 Solution
Type of Product Type of Cost System
a. Bridge Job-Order
b. Wooden Chair Process
c. HBO Special Comedy Show Job-Order
d. Custom Built Sailboat Job-Order
e. Hand Painted Family Portrait Job-Order
f. Standard Car with Custom Paint Work Hybrid
g. Stapler Process
h. Stereo Speakers Process
i. An Order for 5,000 Pairs of U.S. Army Boots Hybrid
j. Apartment Building Job-Order
k. Bottle of Pepsi Cola Process
l. Man’s Suit Hybrid
m. Van with Custom Features Hybrid
n. Tennis Lesson Job-Order
o. Custom Made Cabinets Job-Order
p. Cellular Telephone Process
q. Shoes Process
Demonstration Problem 18-2 Solution
a.
Cost of Finished Goods Inventory (Job 3)
Direct Materials $3,500
Direct Labor 2,200
Overhead ($2,200 x $0.50) 1,100
Total $6,800
Demonstration Problem 18–2 b. c. Solution (reference numbers are provided for convenience)
Cash Raw Materials Work in Process Finished Goods Common Stock
(1)25,000 (2) 8,000 (2) 8,000 (3) 7,000 (3) 7,000 (6)11,900 (6)11,900 (7) 5,100 (1) 25,000
(7) 6,900 (4) 9,400 Bal 1,000 (4) 9,400 Bal 6,800 Bal 25,000
(8) 800 (5) 4,700
(9) 4,900 Bal 9,200 Retained Earnings
Bal 8,800 (cl) 800
Cost Sheet Job 1: Cost Sheet Job 1: Bal 800
Manuf. Overhead (3) RM 1,500 (3) RM 1,500
(9) 4,900 (5) 4,700 (4) DL 2,400 (4) DL 2,400 Sales Revenue
(10) 200 (5) OH 1,200 (5) OH 1,200 (cl) 6,900 (7) 6,900
Bal 0 Total 5,100 Total 5,100
Cost of Goods Sold
(5) Overhead Applied:
$0.50 x $9,400 = $4,700 Cost Sheet Job 2: (7) 5,100 (cl) 5,300
(3) RM 2,000 (10) 200
(4) DL 4,800
(5)...
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